PITTSBURGH-Healthcare Trust of America, Inc. (HTA) is acquiring the West Penn Allegheny Building here for $41.34 million. The Allegheny General Hospital (AGH) is a current tenant, taking 31,000-square feet, however it intends to occupy 100% of the property. HTA is a non-traded real estate investment trust which specifically targets medical office and healthcare-related assets.

AGH holds a 15-year master lease for the entirety of the six-story class A office. Spanning 228,870 square feet, the building was constructed circa-2003 for multiple tenants. The AGH is a 724-bed hospital located roughly one-mile from the West Penn Allegheny Building.

"This is an opportunity to acquire a well-located, long-term stabilized asset that will be integral to AGH's corporate operations," says Mark D. Engstrom, EVP of acquisition for HTA, in a statement. The close of the purchase is dependent upon "satisfaction" of a number of unnamed conditions, says Scottsdale, AZ-based HTA. There lease rates are not quoted by HTA, but Cushman & Wakefield's 2Q10 market report notes office rates in the low-20s per square foot. HTA did not respond to GlobeSt.com inquiries by deadline.